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2018-04-20 13:10:04

AAPL

Apple

$166.04

-6.75 (-3.91%)

13:10

04/20/18

04/20

13:10

04/20/18

13:10

Heavy trading in Apple as the sell-off accelerates and implied volatility spikes

Heavy trading in Apple as the sell-off accelerates and implied volatility spikes. The stock down $6.95 to $165.85 and has shed almost 7% since Tuesday. Share volume is 42M and running at roughly double the normal pace. In option action, players active in expiring Apr 170 calls, which are significantly out of the money after the drop in shares today and where more than 70K have changed hands. Apr 165 puts, Apr 167.5 calls, and Apr 167.5 puts are next most active. Meanwhile, the largest trade is 9K May 165 - 175 put spreads at $5.95 and likely rolls long puts down 5 strikes after today's 4% skid in shares. Lastly, 30-day implied volatility up 15.5% to 32.5 and in the 98th percentile of the 52-week range, with earnings slated for 5/1.

01

May

AAPLApple

$166.04

-6.75 (-3.91%)

04/19/18

LBOW

04/19/18NO CHANGELBOWNeutral

Longbow below consensus on Apple iPhone unit growth

Longbow analyst Shawn Harrison said his contacts reiterated outlooks of flat to up 2% for Apple's iPhone growth in both Q2 and FY18. However, even if consensus iPhone forecasts decline to mirror Longbow's forecast, Harrison thinks the downside in the shares may be limited if Apple delivers an aggressive update to its capital return program. He maintains a Neutral rating on Apple ahead of the company's Q2 report on May 1.

Canaccord analyst T. Michael Walkley said his recent survey indicated slow iPhone sales ahead of its new product launches. He anticipates Apple will try and clear its inventory ahead of releasing three new phones in September. The analyst also does not believe Apple consumers are leaving the company ecosystem for Android and thinks they will continue to grow their market share of the premium-tier smartphone market. Walkley reiterated his Buy rating and $200 price target on Apple shares.

04/20/18

MSCO

04/20/18NO CHANGETarget $200MSCOOverweight

Apple should be bought on any post-earnings pullback, says Morgan Stanley

Morgan Stanley analyst Katy Huberty previewed Apple's upcoming earnings report, saying that she expects the company to report in-line March quarter results, but she also believes that consensus estimates for its June quarter need to be lowered. Also, Apple's capital return announcement, which typically comes with its fiscal second quarter report, could amount to a "sell the news" event as expectations for a step up in capital returns have already been at least partially factored into the stock's valuation, Huberty tells investors. The analyst, who lowered her own June quarter iPhone shipment estimate to 34M from 40.5M, believes the Q3 consensus iPhone shipment estimate of 42.9M could be revised "meaningfully lower." While she trimmed her Apple price target to $200 from $203, Huberty keeps an Overweight rating and recommends buying any post-earnings dip, given the intact Services story, troughing estimates and expectations for accelerated capital return.

04/20/18

OTRG

04/20/18NO CHANGEOTRG

Apple iPhone outlook weakens in China, says OTR Global

OTR Global's Q1 checks with wireless carriers, service providers, wholesalers, and an electronics retailer in Asia indicate Apple's Q2 outlook has deteriorated in China due to intensifying competition from Asian vendors. OTR Global's read on Apple's iPhone deteriorates to Mixed from Positive given the "very large" Chinese channels reduction in Q2 orders.